JOIN USSocial e-comm firm DealShare to launch ops in Bengaluru
DealShare, a social e-commerce start-up company that targets middle and lower-income customers in mostly non-metros, is foraying into Bengaluru on Monday. The 1.7-year-old start-up company is already present in 25 cities across Rajasthan, Gujarat and Maharashtra.
DealShare was founded by four young entrepreneurs with varied experience in retail and FMCG business. Their app enables customers to purchase daily essentials including grocery.
“We are trying to bring customers from traditional markets to online e-commerce platforms. About 80% of our customers are first time e-commerce users. Our aim is to sell daily essentials at affordable rates to middle- and low-income customers who do not run behind big brands. Our target customers are those who prefer mostly local brands,” Sourjyendu Medda, Founder & CBO, DealShare told DH.
Unlike other e-commerce companies, DealShare does not stock a wide portfolio of brands in every product segment. It provides two to three curated brands and local brands, as it thinks mass population does not care for big brands that cost more.
He said the company’s focus is on promoting local brands and manufacturers. It has more than 150 manufacturers, out of which around 100 are local manufacturers. DealShare’s aim is to penetrate into the Tier-2 and Tier-3 cities and it started first with Jaipur and expanded later into other cities in Rajasthan and Gujarat. Bengaluru is its 26th city and it aims to expand its business in 75 other cities this year.
“We have our corporate office in Bengaluru, where our category developers and management members work. We tested our business model in Jaipur and started operations partially in Mumbai. Now, we are entering Bengaluru,” Medda told DH.
He said the company’s focus is to engage local employees in each city with knowledge of local language and understand customer preferences. It has stocked selected brands on its platform and gives importance to local brands and manufacturers.
The company has so far raised $11 million including $8 million in Series A round of funding from Matrix Partners, FalconX and Omidyar Network among others.
It is now looking at raising another $15-20 million in Series B round of funding. “Our existing investors have shown interest to fund us in addition to new investors,” Medda said.
With additional funds, the company plans to expand its business by foraying into manufacture of some products including snacks, edible oils and wheat flour to control costs.
It also plans to expand into other major cities such as Chennai, Pune, NCR and Surat nationally and Tier-2 cities in Karnataka such as Tumakuru, Hubballi, Belagavi and Mysuru among others later this year, Medda said adding that it will appoint franchises in smaller cities and go on its own in big cities.